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How peak shaving works

A battery cuts a demand charge only when it is discharging in the 15-minute intervals that set that charge, and many rates have more than one. The simple way is one fixed setpoint. QoreAI sets a new one every 15 minutes. Here is why.

  1. 01

    Demand is measured in 15-minute blocks

    Most commercial and industrial rates average your power over every 15 minutes and charge for demand on top of energy.

  2. 02

    The highest block sets the charge

    One busy 15 minutes sets the demand charge for the whole month. Every other interval could be lower and it would not matter.

  3. 03

    A battery holds a setpoint

    When load goes above the setpoint, the battery covers the difference, so the meter never sees more than the setpoint. Until the battery runs out of energy.

Try the simple approach: one fixed setpoint

Many batteries run on a single setpoint. Drag it down over ThermoFusion's hardest day of July: the saving grows with every kW, until the battery empties before the day is over and the peak gets through.

300 kW
  • Building load
  • Grid demand (billed)
  • Supplied by battery
  • Recharging
  • Setpoint
  • Battery runs out

Battery charge

Empty ·
Demand charge cut
31%
About $4,000/month at an illustrative $30/kW
Billed demand
300 kW
434 kW without a battery
Battery low point
71%
Lowest charge of the day
Demand charge cut at every setpoint
220 kW440 kW

Holds all day: the battery bottoms out at 71%, and the month is billed at 300 kW.

ThermoFusion, Tue, Jul 14: building load peaked at 433.7 kW. With a 200 kW / 400 kWh battery, a 300 kW setpoint holds all day and cuts the month's demand charge by 31%. The lowest setpoint that holds is 256 kW (41%). At 241 kW the battery runs out at 1:30 PM, 434 kW reaches the grid and the cut falls to 0%.

No single number is right all year

How low a battery can hold depends on how long each peak lasts, and that shifts with the season, the schedule and the weather. Hold one fixed setpoint all year and see what it costs.

300 kW
  • Each day's lowest setpoint
  • Lowest that holds all month
  • Month's peak load
  • Left on the table
  • Peak got through
ThermoFusion's building load, Oct 2025 – Sep 2026, 15-minute intervals. Setpoints simulated for a 200 kW / 400 kWh battery with a simple fixed-setpoint rule.
Demand charges cut, one fixed setpoint
29%
Missed the peak in 1 of 12 months
Demand charges cut, each month set right
39%
The best a fixed rule could do, known only after each month ends

Share of the year's demand charges cut, simulated with a simple fixed-setpoint rule.

At 300 kW the battery runs out in April, and that month is billed near the full peak. One fixed setpoint cuts 29% of the year's demand charges; setting each month right would cut 39%.

ThermoFusion, Oct 2025 – Sep 2026. The lowest setpoint a 200 kW / 400 kWh battery could hold all month ranged from 229 kW to 315 kW. Oct: 296 kW, Nov: 235 kW, Dec: 254 kW, Jan: 232 kW, Feb: 253 kW, Mar: 229 kW, Apr: 315 kW, May: 255 kW, Jun: 287 kW, Jul: 256 kW, Aug: 255 kW, Sep: 242 kW. Each month at its own setpoint cuts 39% of the year's demand charges; one fixed 300 kW setpoint cuts 29%.

Same peak, same setpoint, different day

Two August days a week apart peaked within a kilowatt of each other. One peak was over quickly; the other ran for hours. A fixed setpoint that is safe on one empties the battery on the other. Switch to the adaptive plan to see a target that moves with the day hold both.

220 kW
  • Building load
  • Grid demand (billed)
  • Supplied by battery
  • Recharging
  • Setpoint
  • Battery runs out

Wed, Aug 12

Peak 359 kW

Energy above the setpoint258 kWh

Battery charge

Empty ·

Thu, Aug 6

Peak 360 kW

Energy above the setpoint959 kWh

Battery charge

Empty · 8:15 AM

220 kW holds on Wed, Aug 12, but on Thu, Aug 6 the battery runs out at 8:15 AM and 342 kW sets the month's bill.

Wed, Aug 12 and Thu, Aug 6 peaked at 359 kW and 360 kW. The lowest setpoint the 200 kW / 400 kWh battery could hold was 167 kW on Wed, Aug 12 and 255 kW on Thu, Aug 6. 220 kW holds on Wed, Aug 12, but on Thu, Aug 6 the battery runs out at 8:15 AM and 342 kW sets the month's bill. A target that moves with the day instead bills the month at 255 kW (illustrative; the real plan changes every 15 minutes).

QoreAI re-plans every 15 minutes

EQORE does not pick a setpoint and hope. Every 15 minutes QoreAI sets a new plan from everything it sees at the site in real time, to get the facility the most value. QoreSense meters the load and QoreControl carries out each plan within the equipment's limits.

So it adapts on its own when the site changes

  • New equipment

    A new furnace, compressor or line changes the shape of every day. The plan follows the new load without anyone retuning a setpoint.

  • A new shift

    Add a second shift or move production to the weekend, and the peaks move with it. So does the plan.

  • An unexpected load

    A hot afternoon, a rush order or a startup nobody scheduled. The next plan, 15 minutes later, takes it into account.

When the bill has more than one peak

Many sites are billed on several peaks at once, each measured on its own window, and some come with power factor or a grid peak nobody can see coming. That makes the problem much harder. QoreAI weighs all of them together, every 15 minutes.

PG&E B-19, a summer weekday

Example day of load

  • Maximum demand

    Highest 15 minutes at any hour of the month

  • Peak-period demand

    Highest 15 minutes between 4 and 9 PM

  • Part-peak demand

    Highest 15 minutes from 2 to 4 PM and 9 to 11 PM

Each charge is measured on its own window. A kW held down at 6 PM can lower up to two charges (maximum and peak-period), at 3 PM up to two (maximum and part-peak), and at 10 AM one, when that interval would have set the month’s highest for the charge. The right target is different in each part of the day.

Massachusetts and New England, a summer weekday

Example day of load

  • Monthly demand

    Highest interval at any hour of the month

  • Capacity tag

    Your load in the one hour the ISO-NE grid peaks all year. Nobody knows which hour until after.

  • Power factor

    Some rates bill demand in kVA, so reactive power counts in every interval

The monthly peak, the grid’s yearly peak hour and power factor all pull on the same battery, and the peak hour is only known after it has passed.

What it adds up to

For facilities that are a good fit, demand-charge savings and program revenue together often come to about 1–4 months of the electricity bill a year. For any one site it is very hard to know without a full analysis: the tariff, the shape of the load and the programs available all move the number.

A savings assessment models your own interval data against your tariff and shows the range for your site.

How much battery is worth installing? Compare battery size, cost and savings.

Why Massachusetts electricity costs so much, and which parts you can control.

Get a free savings assessment

Questions about peak shaving

What is a demand charge?

A charge for the highest power your facility draws in the billing month, averaged over 15-minute intervals and billed per kW. On many commercial and industrial rates it is a large share of the bill, and one busy interval sets it.

What is a peak-shaving setpoint?

The grid demand the battery tries to hold. When the facility draws more than the setpoint, the battery supplies the difference; when it draws less, the battery can recharge with the headroom. A simple battery controller holds one fixed setpoint. QoreAI sets a new one every 15 minutes.

Why not set the setpoint as low as possible?

Because a battery holds a fixed amount of energy. The lower the setpoint, the more energy each peak takes. Set it too low and the battery runs empty before the peak is over, the load goes straight to the grid, and that interval sets the bill. A fixed setpoint has to choose between being cautious every day and failing on the hard ones.

What happens if the battery misses one peak?

The demand charge is set by the single highest interval of the month, so one miss resets the billed peak for the whole month, even if every other day was held. That is why the battery has to be run against the whole month, not just the day in front of it.

Does EQORE use a fixed setpoint?

No. A fixed setpoint is the simple approach, and it is either too cautious on most days or too aggressive on the hard ones. QoreAI re-plans every 15 minutes from what it sees at the site in real time, setting a new target to get the facility the most value. It adapts on its own when something changes, such as new equipment, a new shift or an unexpected load.

Does recharging the battery create a new peak?

It can if it is done carelessly. Recharging adds load, so it has to fit in the headroom under the current target, or the charging itself sets a new peak. EQORE plans recharging together with discharging.

What if my rate has more than one demand charge?

Many do. PG&E B-19 charges for the month's maximum demand and again for the highest demand in the 4 to 9 PM peak period, each measured on its own window. In New England a site can face its monthly peak, a capacity tag set by the grid's single peak hour of the year, and power factor at the same time. QoreAI plans for all of them together rather than holding one number.

How much could a battery save us?

For facilities that are a good fit, demand-charge savings and program revenue together often come to about 1–4 months of the electricity bill a year. For any one site it is very hard to know without a full analysis: the tariff, the shape of the load and the programs available all move the number. The panels on this page show percentages and kW for that reason; the dollar line in the simulator is illustrative.

Can the same battery earn utility program revenue?

Yes. Programs such as ConnectedSolutions and the Clean Peak Standard pay for discharging during specific windows. Those windows compete with your own peaks for the same stored energy, so the controller plans them together. Which programs apply depends on your utility and location.

Sources (2)· Last reviewed October 26, 2026
  1. PG&E Electric Schedule B-19 (opens in a new tab), demand charges and time periods
  2. ISO New England Forward Capacity Market (opens in a new tab), how capacity obligations are set

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